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Microsoft Posts Deeper Loss in Video Game Unit | |
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| Time: 00:00 EST/05:00 GMT | News Source: Reuters | Posted By: Todd Richardson | ||
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Microsoft Corp. MSFT.O nearly doubled its losses from the Xbox video game console in the December quarter, according to a regulatory filing on Friday, as the unit that makes its Office software closed in on Windows as being the company's most profitable. In a quarterly report with the U.S. Securities and Exchange Commission, Microsoft said it posted operating income of $1.97 billion in the December-ended quarter in its Windows-centered business unit on revenue of $2.44 billion. That was down from income of $2.11 billion and revenue of $2.68 billion a year earlier. Microsoft's Home and Entertainment segment, which includes the Xbox, games for personal computers and the company's TV products, posted an operating loss of $348 million in the quarter on revenue of $1.28 billion. A year earlier it had revenue of $833 million and a loss of $180 million. | ||
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| #1 By 1845 (12.209.152.69) at 2/1/2003 1:26:42 AM |
| Rueters was unable to see past this little bit of bad news to see that sales of the Xbox were up. Also, margins were up for some of their other divisions. This was a good quarter for Microsoft. |
| #2 By 3653 (216.153.67.116) at 2/1/2003 3:21:08 AM |
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And when XBox sales TRIPLE... the headline will read... "XBox losses top 300%" and somewhere a frustrated author will have a few seconds of glee.
And halcyon, I wouldn't call a 19% market share "not doing too well". I think they are doing splendid. The newbie is rockin. This post was edited by mooresa56 on Saturday, February 01, 2003 at 03:22. |
| #3 By 1845 (12.209.152.69) at 2/1/2003 8:41:21 AM |
| A better start to the weekend is realizing that Sony is a dwarf compared to Microsoft in terms of overall earnings and income. Sony is ahead in a little battle. Microsoft is winning the war. |
| #4 By 7390 (63.211.44.114) at 2/1/2003 7:51:40 PM |
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#4, keep in mind that the PS2 is further along in it's lifecycle than the Xbox. At this of the game it would be more alarming if they didn't turn a profit (speaking about the game division only).
What I would like to see is the Xbox profitability forcast, if there is such a thing. How many boxes/games/xbox live subscriptions would they have to sell to turn a profit. If you told MS that after a little over a year on the market you would a 19% market share they probably wouldn't have believed you. THE XBOX IS A SUCCESS. Too bad that I paid almost $500 for it when it first came out (early adopters fee). Lets wait and see the number after the next holiday season. With Halo2 and other games in the pipeline I am "guess-tamating" a 30-40 market share. |
| #5 By 12071 (203.217.2.203) at 2/2/2003 8:17:15 AM |
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#6 Technically consumers couldn't care less how advanced the XBOX is or isn't. All that matters is that it has good games, preferably lots of good games across many different categories so they appeal to the greatest amount of people and that those games look nice. Even loading time isn't that much of a problem with consumers especially with the amount of time required to be spent looking at the "Loading Now" screen for many PSX games for instance.
The PS2 is the most popular because it carried with it all the users of PSX, it let them play DVD's, it let them play all their PS2 games and it let them keep all their PSX games as those could be played as well. The PS2 also had a LONG time in market before the XBOX and GameCube came out to further strengthen it's hold. So not a hell of a lot is going to change until the "next round" of consoles comes out. Sony will do well to include backward compatibility as this will give them a good edge and hopefully Microsoft will do the same. But the point at the end of the day is that it doesn't matter how many polygons a system can render in real time... no-one actually cares about this except for geeks arguing in forums about which system is the "best". The "best" system is the one that has the games the majority of consumers want to buy! |
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